CHIPPED timber exports from the region could decrease, with the Federal Government announcing a $1.3m grant to research local production of construction materials from the low-value product.

The Agricultural Trade and Market Access Cooperation (ATMAC) program grant was announced by Member for Wannon Dan Tehan and Mt Gambier-based Member for Barker Tony Pasin from the Portland Trawler Wharf on Tuesday, and the project will be led by the Forest and Wood Products Australia (FWPA) in partnership with the Green Triangle Forest Industries Hub (GTFIH) and the Australian Forest Products Association.